Income tax: where a taxpayer receives an asset other than land as compensation for the compulsory acquisition of a portion of land which he or she used in carrying on a business, is rollover relief under section 160ZZL of the Income Tax Assessment Act 1936 available?

Yes. Rollover relief is available.

Section 160ZZL does not require the replacement asset to be of the same nature as, or used for a similar purpose to, the original asset. Provided the replacement asset is not trading stock it need only be received by the taxpayer as compensation for the compulsory acquisition of the original asset. Notes: (i) Where the original asset is acquired on or after 20 September 1985 the market value of the replacement asset must exceed the amount that would have been the indexed cost base of the resumed portion of land. (ii) The taxpayer must make an election that section 160ZZL is to apply.